REX American Resources Earnings in Focus Amid Ethanol Market Shift

REX American Resources Corporation is set to report its fiscal second-quarter earnings on Wednesday, and investors are keeping a close eye on the ethanol producer's performance. Analysts expect REX to post earnings of $0.42 per share on revenue of $194.8 million for the quarter ended July 31, representing a 24% sequential revenue increase from the prior quarter.

The company has reported record-breaking first-quarter earnings, with gross profit more than doubling year-over-year to $29.1 million driven by production tax credit income and lower corn costs. However, this quarter's earnings are expected to decline from the previous quarter's $0.56 per share due to operational dynamics in the ethanol market.

The expansion of ethanol production at the One Earth facility will be a key focus, with REX expecting the facility to become fully operational during fiscal 2026. The project represents a capital commitment of $220 million to $230 million and positions REX to benefit from evolving low-carbon fuel incentives.